Are Facebook Ads a Waste of Money?
Is it even worth the time and cost to run them?
Many businesses across the world are spending money on Facebook ads.
Facebook had another strong quarter in Q4 2016, earning $8.81 billion in revenue and $1.41 EPS. It pulled that from 1.86 billion monthly users, up 3.91 percent this quarter, or 70 million users, from 1.79 billion, but at a slower pace than its 4.67 percent growth last quarter. Mobile now makes up 84 percent of its ad revenue, the same as last quarter, accounting for $7.248 billion, signalling that Facebook has successfully completed its shift to mobile.
Facebook blew past analyst estimates, which were $8.51 billion in revenue $1.31 EPS. Profit reached $3.568 billion with revenue growth at 177 percent YoY, compared to $2.379 billion last quarter. Revenue was up 51 percent YoY compared to 56 percent last quarter and 59 percent in Q2. Facebook raked in $27.6 billion in total revenue in 2016.
Needless to say, MANY businesses are giving them a lot of money each month. They did more than 8 billion in revenue last quarter…
So should you give more money to them or keep it and invest it somewhere else?
To put it simply yes.
But here’s why.
Over the past 5 years facebook has really grown up as an ad platform. They used to pretty pitiful in what they offered in terms of segmentation and standard platform features. Google Adwords has always been the gold standard in terms of platforms and abilities. Facebook is now competing with them and a good choice to deploy your dollars.
Facebook differs from almost every other platform due to its insane amounts of data it has about every single user. It goes way beyond knowing just age and gender and location, but knows what they are interested in, when their life events are happening and where they just moved. You can even target people who like peanut butter and jelly sandwiches.
Since this is the case, it’s silly not to try it out, there is likely a strategy that will work for your business. It is not a shopping mall, you can’t always just ask people to give you money right away, sometimes you have to nurture them and give them some value first, but customers that come from facebook are often times highly valuable.
There are about 1 million different strategies you can deploy. There are about 1 million more people who think they know what they are doing. It can be a confusing and disparate landscape, where many people are lost.
Facebook can take and waste all of your money pretty quick if you don’t know what you are doing. So they are a waste of money without the proper strategy. But when it comes down to it, if you have a good funnel set up and a pat to take your users through, you can be high profitable with your advertising dollars.
I believe you should spend money on facebook, I just think it’d be wise to get someone to help you out if you aren’t confident in what you are doing.
If you want a free plan to double your profits and spend your facebook ad dollars effectively, let me know.